• 30 Jun 2014 at 4:20 PM

Troy Fraser Loves The Free Market

At least when it comes to the telecommunications industry. The Texas state senator’s commitment to capitalism, however, does not extend to New York hedge funds or private-equity firms or their designs on the Lone Star State’s electric utilities.

A powerful Texas state senator warned against a takeover by hedge funds of the power distribution unit of bankrupt Energy Future Holdings and said the state would prefer an owner with a long-term view.

Senator Troy Fraser told Reuters on Friday that Texas prefers that the new owner of the power distribution unit, Oncor, invest cash in the business, and would be concerned about any deal that increases debt levels.

“My concern is New York hedge funds have a short-term approach,” he said by phone. “The view of Texas is obviously we’re interested in someone looking at the long-term strategy or solution, rather than someone who is trying to buy it and flip it.”

Texas lawmaker warns against hedge funds ‘flipping’ Energy Future unit [Reuters]

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Comments (2)

  1. Posted by Lucifer's Admin | July 1, 2014 at 10:09 AM

    ALEC's Legislator of the Year = Satan's bb of the year.

  2. Posted by Guest | July 1, 2014 at 10:24 AM

    What Shazbutt and Fraser both fail to grasp is that it is a regulated entity. If the new owners don't get along well with the regulators in Austin, they will have a very painful and unprofitable experience.